The World Bank has explained the reasons behind the cancellation of $717.7 million earmarked for power sector reforms in Nigeria, days after angry Nigerians flooded the organization’s Instagram comment section with complaints over the country’s worsening electricity crisis.
According to reports, the cancelled funds were originally intended to support major electricity sector projects and reforms aimed at improving power supply across the country. However, the World Bank disclosed that the decision was influenced by economic challenges, delays in implementation, and difficulties in meeting project conditions.
The development comes amid growing public frustration over poor electricity supply, rising tariffs, and the continuous collapse of the national grid.
Many Nigerians had recently taken to the World Bank’s Instagram page to express anger and disappointment, accusing both the Nigerian government and international financial institutions of failing to improve the nation’s power sector despite billions of dollars in loans and interventions over the years.
Sources revealed that some of the affected projects experienced procurement delays, policy inconsistencies, and issues relating to counterpart funding, making it difficult for the programmes to progress as planned.
The World Bank noted that while some projects recorded progress, others failed to meet the required standards and timelines needed for continued financing.
The institution added that future support for Nigeria’s power sector would depend on stronger reforms, transparency, and effective implementation strategies.
Nigeria continues to face major electricity challenges, with millions of citizens and businesses relying heavily on generators as the national grid struggles to meet demand.
The cancellation of the funds has sparked mixed reactions among Nigerians, with many questioning how previous power sector loans and interventions have been utilized over the years.
